For start-ups lacking sufficient cash to survive, a partner with deep pockets may be a more attainable lifeline than traditional sources of funding.
Venture-capital investments in seed and early-stage companies totaled just $6.31 billion in 2009, compared with $6.96 billion in 2008, according to PricewaterhouseCoopers LLP and the National Venture Capital Association.
Meanwhile, only half of small businesses that tried to borrow money last year got all or most of what they needed, concludes a study from the National Federation of Independent Business, a Washington trade group. And with the unemployment rate at nearly 10%, family and friends may be just as unlikely a resource.
To read the full, original article click on this link: Partners Can Help, or Hinder - WSJ.com
Author: SARAH E. NEEDLEMAN
